Constitutional and Non-constitutional bodies, Centre-State relations

Centre-State relations

Indian constitution establishes a quasi-federal system that is, the outward structure of the government is federal but spirit is unitary. In case of national or economic crisis it is transformed into a unitary system.

The Government of India Act, 1935, introduced the element of federalism in view of the fact that India was a country of sub continental size, a multi-religious multi-racial and multi-lingual nation. In view of this reality the Indian constitution adopted federal system.

The word “Federal” is nowhere used in the constitution of India. Article 1 merely states that “India, that is Bharat, shall be a union of states.” About the nature of Indian Federal system Dr. B.R. Ambedkar clarified that “it established a dual polity with the union at the centre and the state in the periphery, each endowed with sovereign powers to be exercised in the field, assigned to them by the constitution. The union is not a league of states, united in a loose relationship; nor are the states the agencies of the Union, deriving powers from it. Both the Union and the states are created by the constitution. The one is not subordinate to the other in its own field; the authority of one is not subordinate to the other in its own field; the authority of one is co-ordinate with that of the other.”

Centre-state Relations are as follows:

1. Legislative Relations
2. Executive and administrative Relations
3. Financial Relations

Territorial Extent

Article 245(1): Parliament is competent of make laws for whole or any part of territory of India. Legislature of State may make laws for whole or any part of State.

Article 245 (2): Laws made by Parliament can have extra-territorial effect (outside of Indian Territory). Laws of Parliament also govern the Indian Subjects and their property in any part of the world.

The Constitution places certain restrictions on the plenary territorial jurisdiction of the Parliament. The laws of Parliament are not applicable in the following areas:

• The President can make regulations for the peace, progress and good government of the five Union Territories– the Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli, Daman and Diu and Ladakh. It may also repeal or amend any act of Parliament in relation to these union territories.
• The governor is empowered to direct that an act of Parliament does not apply to a scheduled area in the state or apply with specified modifications and exceptions.
• The Governor of Assam may direct that an act of Parliament does not apply to a tribal area (autonomous district) in the state or apply with specified modifications and exceptions. The President enjoys the same power with respect to tribal areas (autonomous districts) in Meghalaya, Tripura and Mizoram.

Legislative Relationship between Centre and States

• Articles 245 to 255 in Part XI of the Constitution deal with the legislative relations between the Centre and the states.
• There are three List of Legislative Items viz. Union List, State list and Concurrent list enshrined in the seventh schedule.
• Union List consists of 98 subjects of all India importance (originally 97). The most important subjects in the union list are Defence of India, Naval, Military and Air forces, Atomic energy, foreign affairs, Railways etc. The subjects of the Union List are placed under the exclusive jurisdiction of the Union government.
• State list consists of 59 subjects, which are primarily of regional interest (originally 66). The state governments have full authority to make laws on any of the subjects mentioned in the state list, e.g. public order, police, prisons, local government, public health, etc.
• Concurrent list consist of 52 subjects now (originally 47). The subjects included in the concurrent list have varying degrees of local and national interest. Hence both the union and states have powers to make laws on any of the subject included in the concurrent list. In case of a conflict between the union law and the state law over the same subject, the union law would prevail over the state law. The 42nd Amendment Act of 1976 transferred five subjects to Concurrent List from State List, that is, (a) education, (b) forests, (c) weights and measures, (d) protection of wild animals and birds, and (e) administration of justice; constitution and organisation of all courts except the Supreme Court and the high courts.
• The 101st Amendment Act of 2016 has made a special provision with respect to goods and services tax. Accordingly, the Parliament and the state legislature have power to make laws with respect to goods and services tax imposed by the Union or by the State. Further, the parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods or services or both takes place in the course of inter-state trade or commerce.
• Residuary power: There may be some subjects who might not have been included in any of the above three list. Such subjects are known as residuary powers. In U.S.A. and Australia the residuary powers are left to the states and not to the Union. But in India the residuary powers are left to the union as in Canada.
• The Constitution expressly secures the predominance of the Union List over the State List and the Concurrent List and that of the Concurrent List over the State List.
• To determine whether a particular enactment falls under one Entry or the other, it is the Pith and Substance of such enactment and not its legislative level that is taken account of. Pith and Substance here means the true object of the legislation or statute, and the competence of Legislature, which enacts it.
• Colourable Legislation: The motives of the Legislature are, otherwise, irrelevant for determining whether it has transgressed the constitutional limits of the Legislative power. This principle is based on the maxim that you cannot do indirectly what you cannot do directly.

Power of parliament to legislate on state list in the National Interest

Article 249

• Parliament has the power to make laws w.r.t. any matter included in the State list, for a temporary period, if Rajya Sabha passes a resolution supported by a special majority.
• The resolution remains in force for one year; it can be renewed any number of times but not exceeding one year at a time.
• The laws cease to have effect on the expiration of six months after the resolution has ceased to be in force.
• This provision does not restrict the power of a state legislature to make laws on the same matter. But, in case of inconsistency between a state law and a parliamentary law, the latter is to prevail.

Article 250

• Under the Proclamation of Emergency, Parliament can make laws for the whole or any part of the territory of India w.r.t. all matters in the State list.
• Such a law however shall cease to effect on the expiration of 6 months after the proclamation of emergency has ceased to operate.
• Here also, the power of a state legislature to make laws on the same matter is not restricted. But, in case of repugnancy between a state law and a parliamentary law, the latter is to prevail.

Article 252

• If the Legislatures of two or more States pass a resolution to the effect that it is desirable to have a Law passed by Parliament on any matters in State List common to these States, Parliament can make Laws in that respect.
• Such a law can be amended or repealed only by the Parliament and not by the legislatures of the concerned states.
• The effect of passing a resolution under the above provision is that the Parliament becomes entitled to legislate with respect a matter for which it has no power to make a law.
• On the other hand, the state legislature ceases to have the power to make a law with respect to that matter.
• The resolution operates as abdication or surrender of the power of the state legislature with respect to that matter and it is placed entirely in the hands of Parliament which alone can then legislate with respect to it.

Article 253

• Parliament has power to make any law for the whole or any part of the territory of India for implementing treaties and international agreements and conventions.

Article 256

• Under Article 256, Parliament is empowered to make laws w.r.t. all matters in the State list when there is failure of constitutional machinery of the State under Article 356.
• A law made so by the Parliament continues to be operative even after the President’s rule. This means that the period for which such a law remains in force is not co-terminus with the duration of the President’s rule.

Centre’s Control over State Legislation

Constitution empowers the Centre to exercise control over the state’s legislative matters in the following ways:

• The governor can reserve certain types of bills passed by the state legislature for the consideration of the President. The president enjoys absolute veto over them.
• Bills on certain matters enumerated in the State List can be introduced in the state legislature only with the previous sanction of the president. (For example, the bills imposing restrictions on the freedom of trade and commerce).
• The Centre can direct the states to reserve money bills and other financial bills passed by the state legislature for the President’s consideration during a financial emergency.

Administrative Relations

• Articles 256 to 263 in Part XI of the Constitution deal with the administrative relations between the Centre and the states. In addition, there are various other articles pertaining to the same matter.

Distribution of Executive Powers

• The executive power of the Centre extends to the whole of India: (i) to the matters on which the Parliament has exclusive power of legislation (i.e., the subjects enumerated in the Union List); and (ii) to the exercise of rights, authority and jurisdiction conferred on it by any treaty or agreement. Similarly, the executive power of a state extends to its territory in respect of matters on which the state legislature has exclusive power of legislation (i.e., the subjects enumerated in the State List).
• In respect of the subjects enumerated in the Concurrent List, the executive power rests with the states except when a Constitutional provision or a parliamentary law specifically confers it on the Centre. Therefore, a law on a concurrent subject, though enacted by the Parliament, is to be executed by the states except when the Constitution or the Parliament has directed otherwise.

Obligation of States and the Centre

• The Constitution has placed two restrictions on the executive power of the states in order to provide more powers to the Centre. The executive power of every state is to be exercised in such a way
• as to ensure compliance with the laws made by the Parliament and any existing law which apply in the state; and
• as not to impede or prejudice the exercise of executive power of the Centre in the state.
• While the former lays down a general obligation upon the state, the latter imposes a specific obligation on the state not to hamper the executive power of the Centre. Article 365 says that where any state has failed to comply with (or to give effect to) any directions given by the Centre, it will be lawful for the President to impose the president’s rule under Article 356.

Centre’s Directions to the States

• The Centre is empowered to give directions to the states with regard to the exercise of their executive power in the following matters:
• The construction and maintenance of means of communication (declared to be of national or military importance) by the state;
• The measures to be taken for the protection of the railways within the state;
• The provision of adequate facilities for instruction in the mother-tongue at the primary stage of education to children belonging to linguistic minority groups in the state; and
• The drawing up and execution of the specified schemes for the welfare of the Scheduled Tribes in the state.

Mutual Delegation of Functions

• Under Article 258(1), The President with the consent of the Governor of a state entrust either conditionally or unconditionally to that Government or to is officers, functions in relation to any matter to which the executive power of the Union extends.
• Under Article 258(2), Parliament is empowered to use State machinery for the enforcement of Union Laws. For such purpose, it can confer powers or impose duties on State functionaries.
• The Constitution also makes provision for the entrustment of the executive functions of the centre to a state without the consent of the state. But, in this case the delegation is by the parliament and not by the President.
• All India Services are common to both the Union and the States. The officers of these services are appointed and regulated by the Centre and are placed in various States.
• Grants in-aid (Article 275): Parliament has power to make such grants as it may deem necessary to give financial assistance to any State, which is in need of such assistance.
• Article 261 provides that full faith and credit shall be given throughout the territory of India to public acts, records and judicial proceedings of the Union and every State.
• Article 261(3) declares that final judgment or orders delivered or passed by civil courts in any part of territory of India can be executed anywhere in the country.
• Adjudication of disputes relating to waters of inter-state rivers or river valleys. Article 262(2) provides that Parliament may by Law provide that neither the SC nor any other court shall exercise jurisdiction in respect of any such dispute.

 Inter-State Council

• Under Article 263, President has power to establish Inter-State Councils and define its duties, organization and procedure.
• These councils have duty of inquiring into and advising upon disputes, which arises between the States. These Councils also investigate and discuss the subjects of common interest between the Union and States or between two or more states and make recommendations on any such subject for better coordination of policy and action.
• The President has so far established Central Council of Health, a central Council of Local Self-Government and a Transport Development Council.
• Parliament has power to constitute an Inter-State Commerce Commission (Article 307) and empower it to execute such functions as it may deem fit.

Central control over the state administration

• Article 355 imposes two duties on the Centre: (a) to protect every state against external aggression and internal disturbance; and (b) to ensure that the government of every state is carried on in accordance with the provisions of the Constitution.
• The governor of a state is appointed by the president. He holds office during the pleasure of the President. In addition to the Constitutional head of the state, the governor acts as an agent of the Centre in the state. He submits periodical reports to the Centre about the administrative affairs of the state.
• The state election commissioner, though appointed by the governor of the state, can be removed only by the President.

Financial Relations

• Articles 268 to 293 in Part XII of the Constitution deal with Centre–state financial relations.

Allocation of Taxing Powers

After the two amendments (i.e., 80th Amendment and 101st Amendment), the present position with respect to the distribution of tax revenues between the centre and the states are as follows:

1. Taxes Levied by the Centre but Collected and Appropriated by the States (Article 268): This category includes the stamp duties on bills of exchange, cheques, promissory notes, policies of insurance, transfer of shares and others. The proceeds of these duties levied within any state do not form a part of the Consolidated Fund of India, but are assigned to that state.
2. Taxes Levied and Collected by the Centre but Assigned to the States (Article 269): The following taxes fall under this category: (i) Taxes on the sale or purchase of goods (other than newspapers) in the course of inter-state trade or commerce. (ii) Taxes on the consignment of goods in the course of inter-state trade or commerce. The net proceeds of these taxes do not form a part of the Consolidated Fund of India. They are assigned to the concerned states in accordance with the principles laid down by the Parliament.
3. Levy and Collection of Goods and Services Tax in Course of Inter-State Trade or Commerce (Article 269-A): The Goods and Services Tax (GST) on supplies in the course of inter-state trade or commerce are levied and collected by the Centre. But, this tax is divided between the Centre and the States in the manner provided by Parliament on the recommendations of the GST Council. Further, the Parliament is also authorized to formulate the principles for determining the place of supply, and when a supply of goods or services or both takes place in the course of inter-state trade or commerce.
4. Taxes Levied and Collected by the Centre but Distributed between the Centre and the States (Article 270): This category includes all taxes and duties referred to in the Union List except the following: (i) Duties and taxes referred to in Articles 268, 269 and 269-A (mentioned above); (ii) Surcharge on taxes and duties referred to in Article 271 (mentioned below); and (iii) Any cess levied for specific purposes. The manner of distribution of the net proceeds of these taxes and duties is prescribed by the President on the recommendation of the Finance Commission.
5. Surcharge on Certain Taxes and Duties for Purposes of the Centre (Article 271): The Parliament can at any time levy the surcharges on taxes and duties referred to in Articles 269 and 270 (mentioned above). The proceeds of such surcharges go to the Centre exclusively. In other words, the states have no share in these surcharges. However, the Goods and Services Tax (GST) is exempted from this surcharge. In other words, this surcharge cannot be imposed on the GST.
6. Taxes Levied and Collected and Retained by the States: These are the taxes belonging to the states exclusively. They are enumerated in the state list and are 18 in number.

These are : (i) land revenue; (ii) taxes on agricultural income; (iii) duties in respect of succession to agricultural land; (iv) estate duty in respect of agricultural land; (v) taxes on lands and buildings; (vi) taxes on mineral rights; (vii) Duties of excise on alcoholic liquors for human consumption; opium, Indian hemp and other narcotic drugs and narcotics, but not including medicinal and toilet preparations containing alcohol or narcotics; (viii) taxes on the consumption or sale or electricity; (ix) taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-state trade or commerce or sale in the course of international trade or commerce of such goods; (x) taxes on goods and passengers carried by road or inland waterways; (xi) taxes on vehicles; (xii) taxes on animals and boats; (xiii) tolls; (xiv) taxes on professions, trades, callings and employments; (xv) capitation taxes; (xvi) taxes on entertainments and amusements to the extent levied and collected by a Panchayat or a Municipality or a Regional Council or a District Council; (xvii) stamp duty on documents (except those specified in the Union List); and (xviii) fees on the matters enumerated in the State List (except court fees).

Distribution of Non-tax Revenues

• The Centre The receipts from the following form the major sources of non-tax revenues of the Centre: (i) posts and telegraphs; (ii) railways; (iii) banking; (iv) broadcasting (v) coinage and currency; (vi) central public sector enterprises; (vii) escheat and lapse;19 and (viii) others.
• The States The receipts from the following form the major sources of non-tax revenues of the states: (i) irrigation; (ii) forests; (iii) fisheries; (iv) state public sector enterprises; (v) escheat and lapse;20 and (vi) others.

Grants-in-Aid to the States

• Besides sharing of taxes between the Centre and the states, the Constitution provides for grants-in-aid to the states from the Central resources. There are two types of grants-in-aid, viz, statutory grants and discretionary grants:

Statutory Grants

• Article 275 empowers the Parliament to make grants to the states which are in need of financial assistance and not to every state. These sums are charged on the Consolidate Fund of India every year.
• Apart from this general provision, the Constitution also provides for specific for specific grants for promoting the welfare of the scheduled tribes in a state or for raising the level of administration of the scheduled areas in a state including the State of Assam.
• The statutory grants under Article 275 (both general and specific) are given to the states on the recommendation of the Finance Commission.

Discretionary Grants

• Article 282 empowers both the Centre and the states to make any grants for any public purpose, even if it is not within their respective legislative competence. Under this provision, the Centre makes grants to the states.

Other Grants

• The Constitution also provided for a third type of grants-in-aid, but for a temporary period.
• Thus, a provision was made for grants instead export duties on jute and jute products to the States of Assam, Bihar, Orissa and West Bengal. These grants were to be given for a period of ten years from the commencement of the Constitution. These sums were charged on the Consolidated Fund of India.

Borrowing by the Centre and the States

• The centre can grant loans to states and also give guarantee in respect of loans raised by them (Article 293).
• The Central government can borrow either within India or outside upon the security of the Consolidated Fund of India or can give guarantees, but both within the limits fixed give the Parliament.
• Similarly, a state government can borrow within India (and not abroad) upon the security of the Consolidated Fund of the State or can give guarantees, but both within the limits fixed by the legislature of that state.
• The Central government can make loans to any state or give guarantees in respect of loans raised by any state. Any sums required for the purpose of making such loans are to be charged on the Consolidated Fund of India.
• A state cannot raise any loan without the consent of the Centre, if there is still outstanding any part of a loan made to the state by the Centre or in respect of which a guarantee has been given by the Centre.

Zonal Councils

• Zonal Councils aim at promoting cooperation & coordination between States, UTs and the Centre.
• They discuss &make recommendations regarding common matters. That is, they are only deliberative and advisory bodies.
• These are statutory bodies created by States Reorganization Act of 1956. The Act divided the country into 5 zones:
• Northern Zone
• Central Zone
• Eastern Zone
• Western Zone
• Southern Zone
• Each zonal council consist of:
• From Centre – Home Minister (acts as a chairman)
• From States - CM of all States in Zone + 2 other ministers (Each CM acts as a Vice-Chairman by rotation, holding office for a period of 1 year at a time)
• Administrators of all UTs in the zone
• Following can be associated as advisors (without right to vote)
• One person nominated by Planning Commission.
• Chief Secretary of each state in the zone.
• Development Commissioner of each state in the Zone.

North-Eastern Council

• In addition to the above Zonal Councils, a North-Eastern Council was created by a separate Act of Parliament—the North-Eastern Council Act of 1971.
• Its members include Assam, Manipur, Mizoram, Arunchal Pradesh, Nagaland, Meghalaya, Tripura and Sikkim. Its functions are similar to those of the zonal councils, but with few additions.
• It has to formulate a unified and coordinated regional plan covering matters of common importance.
• It has to review from time to time the measures taken by the member states for the maintenance of security and public order in the region.

Constitutional bodies

Election Commission

• Article 324 provides that the power of superintendence, direction and control of elections to parliament, state legislatures, the office of President of India and the office of vice-President of India shall be vested in the election commission.
• It is a permanent and an independent body common to both the Central government and the state governments.
• It consists of the chief election commissioner and other election commissioners, as the President may decide from time to time.
• President appoints both the chief election commissioner and other election commissioners. The conditions of service and tenure of office of the election commissioners and the regional commissioners shall be determined by the President.
• The chief election commissioner and the two other election commissioners have equal powers and receive equal salary, allowances and other perquisites, which are similar to those of a judge of the Supreme Court.
• They hold office for a term of six years or until they attain the age of 65 years, whichever is earlier.

 Powers and Functions

• The powers and functions of the Election Commission with regard to elections to the Parliament, state legislatures and offices of President and Vice-President can be classified into three categories, viz.

1. 1. Administrative
   2. Advisory
   3. Quasi-Judicial

• It determines the territorial areas of the electoral constituencies throughout the country on the basis of the Delimitation Commission Act of Parliament.
• It prepares the electoral roll and registers all eligible voters.
• It grants recognition to the political parties and hence provides them with election symbols. It acts as a court for settling disputes related to granting of recognition and allotment of election symbols.
• It advises both the President and Governor on matters relating to the disqualifications of the members of Parliament and member of state legislature respectively.
• It supervises the machinery of elections throughout the country to ensure free and fair elections.
• It can cancel polls in the event of rigging, booth capturing, violence and other irregularities.

Union Public Service Commission

• Articles 315 to 323 in Part XIV of the Constitution deals with Union Public Service Commission. It deals with the composition, appointment and removal of members along with the independence, powers and functions of the UPSC.
• It consists of a chairman and other members appointed by the President of India on his discretion.
• The chairman and members of the Commission hold office for a term of six years or until they attain the age of 65 years, whichever is earlier.
• The Constitution visualises the UPSC to be the ‘watch-dog of merit system’ in India. UPSC is only a central recruiting agency. The role of UPSC is not only limited, but also recommendations made by it are only of advisory nature and hence, not binding on the government.
• The same structure exists in the state as well, consisting of same organisational set up and same kind of functions confined to that particular state. Although the chairman and members of a SPSC are appointed by the Governor, they can be removed only by the President (and not by the Governor). The President can remove them on the same grounds and in the same manner as he can remove a chairman or a member of the UPSC.
• The President can remove the chairman or any other member of UPSC from the office under the following circumstances:
• If he is adjudged an insolvent (that is, has gone bankrupt);
• If he engages, during his term of office, in any paid employment outside the duties of his office; or
• If he is, in the opinion of the President, unfit to continue in office by reason of infirmity of mind or body.
• In addition to these, the president can also remove the chairman or any other member of UPSC for misbehaviour. However, in this case, the president has to refer the matter to the Supreme Court for an enquiry. If the Supreme Court, after the enquiry, upholds the cause of removal and advises so, the president can remove the chairman or a member. Under the provisions of the Constitution, the advice tendered by the Supreme Court in this regard is binding on the president.

Functions

• UPSC conducts the examination for appointments to the all-India services, Central services and public services of the centrally administered territories.
• It assists the states in recruiting candidates requiring special qualifications (if asked for).
• It is consulted on the following matters:
• All matters relating to methods of recruitment to civil services and for civil posts.
• The principles to be followed in making appointments to civil services and posts and in making promotions and transfers from one service to another.
• The suitability of candidates for appointments to civil services and posts; for promotions and transfers from one service to another; and appointments by transfer or deputation. The concerned departments make recommendations for promotions and request the UPSC to ratify them.
• Any claim for reimbursement of legal expenses incurred by a civil servant in defending legal proceedings instituted against him in respect of acts done in the execution of his official duties.
• Any claim for the award of a pension in respect of injuries sustained by a person while serving under the Government of India and any question as to the amount of any such award.
• The UPSC presents, annually, to the president a report on its performance. The President places this report before both the Houses of Parliament, along with a memorandum explaining the cases where the advice of the Commission was not accepted and the reasons for such non-acceptance.

National Commission for SCs

• It’s a constitutional body as it is directly established by Article 338 of the Constitution.
• Originally, Article 338 of the Constitution provided for the appointment of a Special Officer for Scheduled Castes (SCs) and Scheduled Tribes (STs).
• But 89th Constitutional Amendment Act of 2003 bifurcated the combined National Commission for SCs and STs into two separate bodies, namely, National Commission for Scheduled Castes (under Article 338)and National Commission for Scheduled Tribes (under Article 338-A).
• It consists of a chairperson, a vice-chairperson and three other members who are appointed by the President.
• The commission presents an annual report to the President.

Functions

• The Commission is vested with the power to regulate its own procedure.
• The Commission, while investigating any matter or inquiring into any complaint, has all the powers of a civil court trying a suit and in particular in respect of the following matters:
• Summoning and enforcing the attendance of any person from any part of India and examining him on oath;
• requiring the discovery and production of any document;
• receiving evidence on affidavits;
• requisitioning any public record from any court or office issuing summons for the examination of witnesses and documents; and
• Any other matter which the President may determine.
• The Central government and the state governments are required to consult the Commission on all major policy matters affecting the SCs.

National Commission for STs

• The National Commission for Scheduled Tribes (STs) is also a constitutional body in the sense that it is directly established by Article 338-A of the Constitution.
• The Commission was established under Article 338 of the Constitution with the objective of monitoring all the safeguards provided for the SCs and STs under the Constitution or other laws.
• It consists of a chairperson, a vice-chairperson and three other members.
• They are appointed by the President by warrant.
• Their conditions of service and tenure of office are also determined by the President.
• The Commission presents an annual report to the President.

Functions

• To investigate and monitor all matters relating to the constitutional and other legal safeguards for the STs and to evaluate their working;
• To inquire into specific complaints with respect to the deprivation of rights and safeguards of the STs;
• To participate and advise on the planning process of socio-economic development of the STs and to evaluate the progress of their development under the Union or a state;
• To present to the President, reports upon the working of those safeguards;
• To make recommendations for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the STs.

National Commission for BCs

• Supreme Court in the Mandal case judgement (1992) directed the central government to constitute a permanent statutory body to examine the complaints of under-inclusion, over-inclusion or non-inclusion of any class of citizens in the list of backward classes.
• Accordingly, the National Commission for Backward Classes (NCBC) was set up in 1993. Later, the 102nd Amendment Act of 2018 conferred a constitutional status on the Commission. For this purpose, the amendment inserted a new Article 338-B in the constitution to keep the Commission at par with the NCSC and the NCST.
• The Commission consists of a chairperson, a vice-chairperson and three other members. They are appointed by the President by warrant under his hand and seal. Their conditions of service and tenure of office are also determined by the President.

Finance Commission

• According to the Constitution under Article 280, the President of India is authorized to set up a Finance Commission every five years to make recommendation regarding distribution of financial resources between the Union and the States.
• It consists of a chairman and four other members to be appointed by the president. They hold office for such period as specified by the president in his order. They are eligible for reappointment.
• The Constitution authorises the Parliament to determine the qualifications of members of the commission and the manner in which they should be selected. As per the Parliament, the Chairman must be a person having ‘experience in public affairs’. Other four members must be appointed from amongst the following:
• A High Court Judge or one qualified to be appointed as High Court Judge;
• A person having knowledge of the finances and accounts of the Government;
• A person having work experience in financial matters and administration;
• A person having special knowledge of economics.

Functions

• The Finance Commission recommends to the President as to:
• The distribution between the Union and the States of the net proceeds of taxes to be divided between them and the allocation between the States of respective shares of such proceeds;
• The principles which should govern the Grants-in-aid of the revenue of the States out of the Consolidated Fund of India;
• The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State;
• Any other matter referred to the Commission by the President in the interest of sound finance.
• The commission submits its report to the president. He lays it before both the Houses of Parliament along with an explanatory memorandum as to the action taken on its recommendations.

Goods and Services Tax Council

• The 101st Amendment Act of 2016 inserted a new Article 279-A in the Constitution. This Article empowered the President to constitute a GST Council by an order.
• The Secretariat of the Council is located at New Delhi. The Revenue Secretary acts as the ex-officio Secretary to the Council.
• The Council is required to make recommendations to the centre and the states on the matters of GST.
• The Council is a joint forum of the centre and the states and consists of the following members:

1. 1. The Union Finance Minister as the Chairperson
   2. The Union Minister of State in-charge of Revenue or Finance
   3. The Minister in-charge of Finance or Taxation or any other Minister nominated by each state government

• The members of the Council from the states have to choose one amongst themselves to be the Vice-Chairperson of the Council. They can also decide his term.
• The Union Cabinet also decided to include the Chairperson of the Central Board of Excise and Customs (CBEC) as a permanent invitee (non-voting) to all proceedings of the Council.
• Every decision of the Council is to be taken by a majority of not less than three-fourths of the weighted votes of the members present and voting at the meeting. The decision is taken in accordance with the following principles:

1. 1. The vote of the central government shall have a weightage one-third of the total votes cast in that meeting.
   2. The votes of all the state governments combined shall have weightage of two-thirds of the total votes cast in that meeting.

Attorney-General of India and Advocate General of the State

• The Attorney-General of India is the first Law Officer of the Government of India.
• The Attorney-General is appointed by the President and he holds office during the pleasure of the President.
• In order to be appointed as the Attorney General of India, a person must have qualified to be appointed as a Judge of the Supreme Court.
• Article 165 has provided for the office of the advocate general for the states. He is the highest law officer in the state. Thus he corresponds to the Attorney General of India. The advocate general is appointed by the governor. He must be a person who is qualified to be appointed a judge of a high court. In other words, he must be a citizen of India and must have held a judicial office for ten years or been an advocate of a high court for ten years.

Functions and Responsibilities

• To give advice on such legal matters and to perform such other duties of a legal character as may, from time to time, be referred or assigned to him by the President; and
• To discharge the functions conferred on him by the Constitution or any other law for the time being in force [Art. 76]
• In the performance of his official duties, the Attorney-General shall have a right of audience in all Courts in the territory of India.
• He represents the Union & the States before the courts but is also allowed to take up private practice provided the other party is not the state. Because of this he is not paid salary but a retainer to be determined by the President. The Attorney-General gets a retainer equivalent to the salary of a Judge of the Supreme Court.

Special Officer for Linguistic Minorities

• Originally, the Constitution of India did not make any provision with respect to the Special Officer for Linguistic Minorities.
• Later, the States Reorganisation Commission (1953-55) made a recommendation in this regard.
• Accordingly, the Seventh Constitutional Amendment Act of 1956 inserted a new Article 350-B in Part XVII of the Constitution.
• It must be noted here that the Constitution does not specify the qualifications, tenure, salaries and allowances, service conditions and procedure for removal of the Special Officer for Linguistic Minorities.

Commissioner for Linguistic Minorities

• Under the provisions of Article 350-B of the Constitution, the office of the Special Officer for Linguistic Minorities was created in 1957.
• He is designated as the Commissioner for Linguistic Minorities.
• He maintains liaison with the State Governments and Union Territories through nodal officers appointed by them.
• At the Central level, the Commissioner falls under the Ministry of Minority Affairs. Hence, he submits the annual reports or other reports to the President through the Union Minority Affairs Minister.

Comptroller and Auditor General of India

• The CAG is appointed by the president of India by a warrant under his hand and seal.
• He holds office for a period of six years or upto the age of 65 years, whichever is earlier.
• He can resign any time from his office by addressing the resignation letter to the president. He can also be removed by the president on same grounds and in the same manner as a judge of the Supreme Court. Thus, he does not hold his office till the pleasure of the president, though he is appointed by him.

Functions

• The Constitution (Article 149) authorises the Parliament to prescribe the duties and powers of the CAG in relation to the accounts of the Union and of the states and of any other authority or body. Accordingly, the Parliament enacted the CAG’s (Duties, Powers and Conditions of Service) act, 1971.
• He audits the accounts related to all expenditure from the Consolidated Fund of India, consolidated fund of each state and consolidated fund of each union territory having a Legislative Assembly.
• He audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the contingency fund of each state and the public account of each state.
• He audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and state governments.
• He audits the receipts and expenditure of the Centre and each state to satisfy himself that the rules and procedures in that behalf are designed to secure an effective check on the assessment, collection and proper allocation of revenue.
• He audits the receipts and expenditure of: (a) All bodies and authorities substantially financed from the Central or state revenues; (b) Government companies; and (c) Other corporations and bodies, when so required by related laws.
• He audits all transactions of the Central and state governments related to debt, sinking funds, deposits, advances, suspense accounts and remittance business. He also audits receipts, stock accounts and others, with approval of the President, or when required by the President.
• He audits the accounts of any other authority when requested by the President or Governor. For example, the audit of local bodies.
• He advises the President with regard to prescription of the form in which the accounts of the Centre and the states shall be kept (Article 150).
• He submits his audit reports relating to the accounts of the Centre to President, who shall, in turn, place them before both the Houses of Parliament (Article 151).
• He submits his audit reports relating to the accounts of a state to governor, who shall, in turn, place them before the state legislature (Article 151).
• He ascertains and certifies the net proceeds of any tax or duty (Article 279). His certificate is final. The ‘net proceeds’ means the proceeds of a tax or a duty minus the cost of collection.
• He acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.
• He compiles and maintains the accounts of state governments. In 1976, he was relieved of his responsibilities with regard to the compilation and maintenance of accounts of the Central Government due to the separation of accounts from audit, that is, departmentalisation of accounts.
• The CAG submits three audit reports to the President–audit report on appropriation accounts, audit report on finance accounts, and audit report on public undertakings. The President lays these reports before both the Houses of Parliament. After this, the Public Accounts Committee examines them and reports its findings to the Parliament.

Non-constitutional bodies

NITI Aayog

• NITI Aayog (Policy Commission) or National Institution for Transforming India was established via a Union Cabinet resolution on January 1, 2015 as a premier Policy Think Tank of the Union Government.
• It’s an extra-constitutional, non-statutory and advisory body.

Aims and Functions of Niti Aayog

The key objectives to establish NITI Aayog were as follows:

• To work as an advisory body to give directional and strategic inputs to Union Government and also State governments on request.
• Put an end to the slow and tardy implementation of the policy by fostering inter-ministry, inter-state and centre-state coordination.
• To foster cooperative federalism on the principle of Strong states make a strong nation.
• To replace the top-down development approach with bottom-top development approach.
• To design policy framework for weaker section of society that may not have benefited from economic progress.
• To create a knowledge, innovation and entrepreneurial support system via a community of national and international experts, practitioners and partners.
• To serve as a platform for resolution of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development agenda.
• To monitor and evaluate the implementation of programmes, and focus on technology up gradation and capacity building.

On the basis of above, functions of NITI Aayog can be divided into four categories viz.

• To act as a Resource Centre & Knowledge Hub
• Design Policy & Programme Framework
• Foster Cooperative Federalism
• Monitoring and Evaluation.

Composition of NITI Ayog

• Chairperson-Prime Minister
• Governing Council– Its members are Chief Ministers and Administrators of the Union Territories
• Regional Councils-These are created as per need and its members would be chief ministers and administrators of UTs of respective regions.
• Vice-Chairperson– The Vice-chairperson of the Niti Aayog is appointed by Prime Minister.
• Further, the NITI Aayog has full time members (number unspecified), part time members (maximum 2, these would be scholars from universities and research institutions), Ex-officio members (maximum 4, these are ministers from Union Council of Ministers), Special Invitees (appointed by PM for fixed tenure.
• Finally, there is a Chief Executive Officer (CEO) of the Niti Ayog, who is appointed by Prime Minister and has a rank similar to Secretary to the Government of India.

National Human Rights Commission

The National Human Rights Commission is a statutory (and not a constitutional) body. It was established in 1993 under a legislation enacted by the Parliament, namely, the Protection of Human Rights Act, 1993.

Composition

• The commission is a multi-member body consisting of a chairman and five members.
• The chairperson should be a retired chief justice of India or a judge of the Supreme Court and members should be a serving or retired judge of the Supreme Court, a serving or retired chief justice of a high court and three persons (out of which at least one should be a woman) having knowledge or practical experience with respect to human rights.
• In addition to these full-time members, the commission also has seven ex-officio members–the chairpersons of the National Commission for Minorities, the National Commission for SCs, the National Commission for STs, the National Commission for Women, the National Commission for BCs and the National Commission for Protection of Child Rights and the Chief Commissioner for Persons with Disabilities.
• The chairperson and members are appointed by the president on the recommendations of a six-member committee consisting of the prime minister as its head, the Speaker of the Lok Sabha, the Deputy Chairman of the Rajya Sabha, leaders of the Opposition in both the Houses of Parliament and the Central home minister. Further, a sitting judge of the Supreme Court or a sitting chief justice of a high court can be appointed only after consultation with the chief justice of India.
• The chairperson and members hold office for a term of three years or until they attain the age of 70 years, whichever is earlier. They are eligible for re-appointment. After their tenure, the chairperson and members are not eligible for further employment under the Central or a state government. The president can remove the chairperson or any member from the office under the following circumstances: (a) If he is adjudged an insolvent; or (b) If he engages, during his term of office, in any paid employment outside the duties of his office; or (c) If he is unfit to continue in office by reason of infirmity of mind or body; or (d) If he is of unsound mind and stand so declared by a competent court; or (e) If he is convicted and sentenced to imprisonment for an offence.
• In addition to these, the President can also remove the chairman or any member on the ground of proved misbehaviour or incapacity. However, in these cases, the President has to refer the matter to the Supreme Court for an inquiry. If the Supreme Court, after the inquiry, upholds the cause of removal and advises so, then the President can remove the chairman or a member.
• The salaries, allowances and other conditions of service of the chairman or a member are determined by the Central government. But, they cannot be varied to his disadvantage after his appointment.

Functions

• To inquire into any violation of human rights or negligence in the prevention of such violation by a public servant, either suo motu or on a petition presented to it or on an order of a court.
• To intervene in any proceeding involving allegation of violation of human rights pending before a court.
• To visit jails and detention places to study the living conditions of inmates and make recommendation thereon.
• To review the constitutional and other legal safeguards for the protection of human rights and recommend measures for their effective implementation.
• To review the factors including acts of terrorism that inhibits the enjoyment of human rights and recommend remedial measures.
• To study treaties and other international instruments on human rights and make recommendations for their effective implementation.
• To undertake and promote research in the field of human rights.
• To spread human rights literacy among the people and promote awareness of the safeguards available for the protection of these rights.
• To encourage the efforts of nongovernmental organisations (NGOs) working in the field of human rights.
• To undertake such other functions as it may consider necessary for the promotion of human rights.

Central Bureau of Investigation

• Central Bureau of Investigation (CBI) was set up in 1963 by a resolution of the Ministry of Home Affairs. Later, it was transferred to the Ministry of Personnel and now it enjoys the status of an attached office.
• It comes under the administrative control of the Department of Personnel and Training (DoPT) of the Ministry of Personnel.
• The CBI is the main investigating agency of the Central Government. It plays an important role in the prevention of corruption and maintaining integrity in administration. It also provides assistance to the Central Vigilance Commission and Lokpal.
• The Lokpal and Lokayuktas Act (2013) amended the Delhi Special Police Establishment Act (1946) and made the following changes with respect to the composition of the CBI:
• The Central Government shall appoint the Director of CBI on the recommendation of a three-member committee consisting of the Prime Minister as Chairperson, the Leader of Opposition in the Lok Sabha and the Chief Justice of India or Judge of the Supreme Court nominated by him.
• There shall be a Directorate of prosecution headed by a Director for conducting the prosecution of cases under the Lokpal and Lokayuktas Act, 2013. The Director of Prosecution shall be an officer not below the rank of Joint Secretary to the Government of India. He shall function under the overall supervision and control of the Director of CBI. He shall be appointed by the Central Government on the recommendation of the Central Vigilance Commission. He shall hold office for a period of two years.
• The Central Government shall appoint officers of the rank of SP and above in the CBI on the recommendation of a committee consisting of the Central Vigilance Commissioner as Chairperson, the Vigilance commissioners, the Secretary of the Home Ministry and the Secretary of the Department of Personnel.
• Later, the Delhi Special Police Establishment (Amendment) Act, 2014 made a change in the composition of the committee related to the appointment of the Director of C.B.I. It states that where there is no recognized leader of opposition in the Lok Sabha, then the leader of the single largest opposition party in the Lok Sabha would be a member of that committee.

Central Vigilance Commission

• The Central Vigilance Commission was set up by the Government in February, 1964 on the recommendations of the Committee on Prevention of Corruption, headed by Shri K. Santhanam, to advise and guide Central Government agencies in the field of vigilance.
• CVC is conceived to be the apex vigilance institution, free of control from any executive authority,monitoring all vigilance activity under the Central Government.
• It advises various authorities in Central Government organizations in planning, executing, reviewing and reforming their vigilance work.
• The Central Vigilance Commission Act 2003 came into effect from 2003.
• The Central Vigilance Commissioner (CVC) is the Chairperson and the Vigilance Commissioners (Members)of the Committee, on whose recommendations, the Central Government appoints the Director of Enforcement
• CVC shall have all the powers of a civil court while conducting any inquiry under sec 11 of the Act.

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